Stipend vs. Scholarship

Main Difference

The main difference between Stipend and Scholarship is that the Stipend is a regular fixed sum of money paid for services or to defray expenses and Scholarship is a award of financial aid for a student to further their education.

• Stipend

  A stipend is a regular fixed sum of money paid for services or to defray expenses, such as for scholarship, internship, or apprenticeship. It is often distinct from an income or a salary because it does not necessarily represent payment for work performed; instead it represents a payment that enables somebody to be exempt partly or wholly from waged or salaried employment in order to undertake a role that is normally unpaid (e.g. a magistrate in the United Kingdom) or voluntary, or which cannot be measured in terms of a task (e.g. members of the clergy).

  Stipends are usually lower than what would be expected as a permanent salary for similar work. This is because the stipend is complemented by other benefits such as accreditation, instruction, food, and/or accommodation.

  Some graduate schools make stipend payments to help students have the time and funds to earn their academic degree (i.e. master’s and doctoral degrees). Universities usually refer to money paid to graduate students as a stipend, rather than wages, to reflect complementary benefits.

• Scholarship

  A scholarship is an award of financial aid for a student to further their education. Scholarships are awarded based upon various criteria, which usually reflect the values and purposes of the donor or founder of the award. Scholarship money is not required to be repaid.This article primarily addresses scholarships in North America.